Attorney General No.
SA2005RF0096
Secretary of State No.
1157
Description
Imposes one-time 45% tax on California residents and certain former California residents owning property worth more than $40 million on January 1, 2007. Amends Constitution to exempt this tax from 1% limit on ad valorem real property taxes. Imposes additional 12% tax on income for high-income taxpayers. Reduces corporate income tax rate by approximately 54%. Eliminates alternative minimum tax and certain tax credits, including those for head of household and dependants. Creates/increases tax credits, including those for teacher pay, public college tuition; property taxes and health insurance. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: One-time increase in state revenues potentially up to $200 billion from imposition of a wealth tax. A portion of this revenue would be required to be allocated to schools with the remainder used for other state spending or tax rebates. Annual increased state taxes- primarily from increased personal income taxes- in the low tens of billions of dollars annually, offset by a commensurate amount of state tax reductions from rate reductions and new tax credits.
Proponents
Paul McCauley
Date
10-14-2005
Document Type
Initiative
Qualified
Failed to Qualify
Recommended Citation
Wealth Tax. Tax Credits. Initiative Constitutional Amendment and Statute. California Initiative 1157 (2005).
https://repository.uclawsf.edu/ca_ballot_inits/1320